The Wrap Up – Trump to address Congress
by Kevin Anseeuw on 02.27.2017
Last week the TSX closed down after seeing several weeks of gains. This was not a surprise since every week cannot be a winner. The decline was largely and broad-based. As an example, Royal Bank of Canada delivered more than $3 billion profit for the latest quarter, and its share fell by 1.65%, mirroring the week at the TSX.
Canadian inflation for January 2017 compared to January 2016 was 2.1%, rising from 1.6% for December 2016. Much of the increase is attributed to the price of gasoline.
In the United States, the markets continued their upward rise. The Trump administration set its economic growth rate goal at 3%, and, if achieved, it would be the highest growth rate since the world financial crisis in 2008. The markets did not react negatively to the Federal Reserve’s comments that they would counteract tax cuts with interest rate increases to temper any inflation the proposed tax and regulatory cuts could cause.
In Canada, fourth-quarter Gross Domestic Product (GDP) along with a Bank of Canada monetary policy announcement will dominate releases and news.
In the U.S. Q4 GDP will also be announced along with housing data, personal income and spending levels. The most important event this week will surround President Trump’s address to Congress on today for the first time. Without all the details Bloomberg says “Trillions of Dollars are at Stake*” https://www.bloomberg.com/news/articles/2017-02-27/trump-s-not-quite-state-of-the-union-address-risks-trillions
Do not forget, MARCH 1ST (Wednesday) is the RRSP contribution deadline.
Have a great week,
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